Income Ideas

The term “income” generally refers to the amount of money, property and other transfers of value received over a set period of time by individuals or entitles as compensation for services, payment for products, returns on investments, pension distributions, gifts and other transfer of value “idea” means a thought or suggestion as to a possible cause of action, the aim or purpose.

An expenditure of words without income of ideas will lead to intellectual bankruptcy
Ravi Zachartas

There are seven different types of income streams. They are active & passive income streams, diversification, earned income, profit income, interest income, dividend income, rental income and capital gains.

Wages and salaries represent the main source of income for all income groups except the lowest, social security payments are the largest income source for the lowest 20% (54% or their income) but in our highly ‘targeted’ system these payments comprise 25% or less or total income for all higher – income groups.

Rental income is any payment you receive for the use or occupation of property. Expenses of renting gross rental income. You generally deduct your rental expenses in the year you pay them.

Dividend income is paid out of the profits of a corporation to the stockholders. It is considered as the income for the tax year rather than a capital gain. However, the U.S Federal government taxes qualified dividends as capital gains instead of income.

Capital gains are the profits from the sale of an asset – shares or stock, a place of land, a business – and generally are considered as taxable income. How much these gains are taxed depends a lot on how long you held the asset before selling.

Interest income means the earnings generated by investment such as savings accounts and certificates of deposit are referred to as interest income for financial companies, revenue minus expenses is referred to as net interest income.

Diversifying your income means drawing earnings from two or more sources rather than from just one job. A diversified income can protect you against the loss of your solid job. Income diversification refers to the increase in income sources or the balance share among the different sources.

Active income is defined as salary earned from services rendered according to an agreed task, within a specified time frame.

Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Services (IRS) says passive income can come from two sources; rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.

Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own.

There are several ways to make money on the side such as drive for Uber or Lyft, become a food delivery driver, join a focus group, delivery groceries, take up baby-sitting, start pet-sitting and advertise on your car, rent out a room, affiliate marketing, dividend stocks, peer to peer lending, sell an online course, sell an e-book, start a YouTube Channel, drop shipping store, buy a profitable app, buy a profitable website, crypto currency mining, hold stocks long term, create an app, rent out your car, start a Laundromat, vending machines, start an ATM business, put ads on your car, crowd funded real estate, investing with robo advisor, run subscription services, invest in royalty income, rent out items you have, sell products on ebay, sell products on Amason, high yield savings accounts, be a silent business partner, start a car wash, hire a virtual assistant and sell print on demand shirts.

While it’s great to have plenty of passive income ideas and dreams, it’s important to remember that not every idea is a great one. Even if you’ve seen others earning money in a particular way, that’s no guarantee that it will work for you, your skills or your lifestyle.

The most difficult thing is the decision to act, the rest if merely tenacity

To find the best ways to make passive income you need to start with some clear goals and plans. You’ll need to know how much you’re able to commit in terms of money and time. And you’ll need to be prepared to make short-term sacrifices to meet your long term aims.

Passive income can be a great way to help you generate extra cash flow, whether you’re running a side hustle or just trying to get a little extra dough each month passive income can help you earn more during the good times and tide you over if you suddenly become unemployed or even if you voluntarily take time away from work and if you’re worried about being able to save enough of your earnings to meet your retirement goals, building wealth through passive income is a strategy that might appeal to you too.